Question

QUESTION 5
The following information for the year ended 28 February 2015 relates to Zimba Traders:
R
Trading inventory (01 March 2014)
42 000
Trading inventory (28 February 2015)
50 000
Purchases
734 000
Sales
1 196 000
Carriage on purchases
18 000
Import duties
10 000
The cost of sales for the year ended 28 February 2015 amounts to ___________:
A
R754 000
B
R744 000
C
R452 000
D
none of the above
(3)
1.7

QUESTUION 5
Which of the following errors will not be revealed by a trial balance?
A. Posting stationery purchased to the wrong side of stationery account.
B. A wrong amount for wages was entered on the correct side of the trial balance.
C. The balance of the bank account in the ledger was incorrectly calculated.
D. No entry had been made for goods taken by the owner for his personal use.

QUESTION 6
The receipt of a loan (if the bank balance is favourable) ____________.
A
decreases assets and increases liabilities
B
decreases liabilities and increases assets.

C
increases both liabilities and equity
D
increases both assets and liabilities

QUESTION 7
The value of inventory on 28 February 2016, using the weighted average cost method of inventory valuation, from the following information is ____________.
February
Units
Unit cost price
01
14
24
28
Opening inventory
Purchases
Purchases
Sales for February
35 000
45 000
20 000
79 000
R10
R12
R14
A
R252 000
B
R292 000

C
R245 700
D
none of the above

QUESTION 8 The following information in respect of Garnet Traders, for the year ended 30 June 2014 is available:
Sales
R 36 000
Gross Profit
R 17 000
Opening inventory
R 5 000
Closing inventory
R 10 000

Garnet Traders uses the periodic inventory system. The purchases figure for the entity is _____________ ?
A R 24 000
B R 29 000
C none of the above
D cannot be determined by the information above

Answer 1

Solution: 4

Cost of sale = beginning inventory + purchases - ending inventory + carriage inward + import duty

= 42,000 + 734,000 - 50,000 + 18,000 + 10,000

= R754,000

Solution : 5

D. No entry had been made for goods taken by the owner for his personal use.

Solution 6 :

D. increases both assets and liabilities

explanation :here, assets means cash & liability means loan.

Solution:7

C. R245 700

working :

weighted average cost = R1,170,000 / 100,000

= R11.70

value of inventory on 28 = R11.70 x 21,000 = $245,700

Solution: 8 A. R 24 000

working:

Purchase = Sales - Gross profit - Opening inventory + Closing inventory

= $36,000 - $17,000 - $5,000 + $10,000

= $24,000